Graduate Opportunity and Affordable Loans Act

Senate Bill

S. 308

119th Congress

Graduate Opportunity and Affordable Loans Act

In Committee

Introduced:Jan 29, 2025

Primary Sponsor

Tommy Hawley Tuberville

Senator

Republican

AL

Cosponsors

1

Quick Stats

Policy Area

Education

Summary

This bill eliminates Direct PLUS Loans for graduate and professional students after June 30, 2025. It establishes aggregate limits of 65,000 dollars for graduate students and 130,000 dollars for professional students on Direct Unsubsidized Loans, in addition to undergraduate amounts. Schools must notify students of the PLUS Loan termination and may set lower limits.

Latest Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

AI Summary

Plain-English explanation of this bill

This bill eliminates Direct PLUS Loans for graduate and professional students after June 30, 2025. It establishes aggregate limits of 65,000 dollars for graduate students and 130,000 dollars for professional students on Direct Unsubsidized Loans, in addition to undergraduate amounts. Schools must notify students of the PLUS Loan termination and may set lower limits.

Last updated: 1/4/2026

Official Summary

Congressional Research Service summary

Graduate Opportunity and Affordable Loans ActThis bill limits federal student loan borrowing for graduate and professional students.Specifically, the bill terminates the ability of a graduate or professional student to receive a Direct PLUS Loan. Institutions of higher education (IHEs) must notify their prospective and enrolled graduate and professional students that Direct PLUS Loans terminate on June 30, 2025.Additionally, the bill establishes the aggregate loan limit for Direct Unsubsidized Loans as $65,000 for a graduate student (in addition to the amount borrowed for undergraduate education) and $130,000 for a professional student (in addition to the amount borrowed for undergraduate education).The bill allows IHEs to set lower loan limits.

Key Points

Main provisions of the bill

Eliminates graduate PLUS Loans after June 30, 2025
Sets 65,000 dollar graduate loan cap
Sets 130,000 dollar professional student cap
Limits are in addition to undergraduate borrowing
Schools can set lower limits
Addresses graduate student debt concerns

How This Impacts Americans

Potential effects on citizens and communities

This bill significantly restricts federal borrowing for graduate education, which currently has no aggregate limit through PLUS Loans. Proponents argue unlimited borrowing drives up tuition and saddles students with unmanageable debt. Critics contend the caps could limit access to graduate education, particularly for low-income students pursuing expensive professional degrees. Schools must adapt their financial aid approaches to work within these new limits.

Policy Areas

Primary Policy Area

Education

Related Subjects

Government lending and loan guarantees

Higher education

Student aid and college costs

Vocational and technical education

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

308, 119th Congress (2025). "Graduate Opportunity and Affordable Loans Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-308